The company's weighted average cost of capital that they use as their discount rate for such calculations is 7% In the Kent, LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months. 35. What would be the monthly debt service on the office building? a. $11,665 b. $9,544 c. $6,890 d. $1,877 36. What would be the net cash flows after debt service in year 3 ? a. $105,470 b. $80,019 c. $100,018 d. $2,980,000 37. What would be the balance of the loan at the end of Year 5 ? a. $1,240,000 b. $1,376,320 c. $1,290,300 d. $1,577,033